Vietnam Textile and Garment Standard Report Q3.2016
World textile & garment (T&G) industry is greatly affected by economic conditions. After a decline in 2009 due to the global economic crisis, the textile & garment industry is on the rebound and expected to grow continuously at a rate of 6% in the coming years.
China, the United State, Germany and Japan are the four largest apparel T&G markets. Large T&G market size in developing countries is mainly contributed by their large population. Expenditure per capita spent on garment shows disparity between the developed and developing countries.
Textile and garment industry is one of the leading sectors of Vietnam. According to the Vietnam Textile and Apparel Association, by the end of 2014, Vietnam had 5,214 textile & garment companies, a majority of them are in medium or small size. Workforce in T&G sector accounts for over 20% of employment in the industrial sector and nearly 5% of the total national workforce.
Vietnam is among the top 5 T&G exporters in the world with market share of 3.1% in 2014. The United States, EU, Japan, and Korea are our main export markets.
Currently, Vietnam mainly operates in sewing, which creates the lowest added value and exports processed clothes, thus the value added is very limited. Vietnam's garment sector is still dependent on raw materials (70-80%) imported mainly from China, Taiwan and Korea.
Domestic T&G market is relatively small, only around USD 3 billion with the low expenditure on T&G per capita. Vietnamese companies face severe competition from foreign brands, counterfeits and illegally imported clothes. Domestic enterprises are yet to focus on skill and knowledge-intensive stages of production, for example: distributing, exporting, designing, and branding. Viet Tien, Nha Be, May 10,… are a few successful enterprises in brand building and marketing.
The Free Trade Agreement, especially VKFTA, EVFTA and TPP, can open up many export opportunities for T&G sector. Some optimistic forecasts state that Vietnam could strive to USD 50-55 billion by 2025.
The industry made up of SMEs with low financial strengths and competitiveness will face challenges in the open economy. However, in the long run the FTAs will drive the industry to move to higher stages in the value chain, deeply integrate into global economy.
China, the United State, Germany and Japan are the four largest apparel T&G markets. Large T&G market size in developing countries is mainly contributed by their large population. Expenditure per capita spent on garment shows disparity between the developed and developing countries.
Textile and garment industry is one of the leading sectors of Vietnam. According to the Vietnam Textile and Apparel Association, by the end of 2014, Vietnam had 5,214 textile & garment companies, a majority of them are in medium or small size. Workforce in T&G sector accounts for over 20% of employment in the industrial sector and nearly 5% of the total national workforce.
Vietnam is among the top 5 T&G exporters in the world with market share of 3.1% in 2014. The United States, EU, Japan, and Korea are our main export markets.
Currently, Vietnam mainly operates in sewing, which creates the lowest added value and exports processed clothes, thus the value added is very limited. Vietnam's garment sector is still dependent on raw materials (70-80%) imported mainly from China, Taiwan and Korea.
Domestic T&G market is relatively small, only around USD 3 billion with the low expenditure on T&G per capita. Vietnamese companies face severe competition from foreign brands, counterfeits and illegally imported clothes. Domestic enterprises are yet to focus on skill and knowledge-intensive stages of production, for example: distributing, exporting, designing, and branding. Viet Tien, Nha Be, May 10,… are a few successful enterprises in brand building and marketing.
The Free Trade Agreement, especially VKFTA, EVFTA and TPP, can open up many export opportunities for T&G sector. Some optimistic forecasts state that Vietnam could strive to USD 50-55 billion by 2025.
The industry made up of SMEs with low financial strengths and competitiveness will face challenges in the open economy. However, in the long run the FTAs will drive the industry to move to higher stages in the value chain, deeply integrate into global economy.
1. BUSINESS ENVIRONMENT
1.1 Macroeconomic situation
Figure 1. GDP growth rate by quarters
Figure 2. Vietnam's GDP per capita 2010 - 2016E
Figure 3. Vietnam’s import value
Figure 4. Vietnam’s export value
Figure 5. Main export products to China, H1/2016
Figure 6. Main products imported from China, H1/2016
Figure 7. VND/CNY exchange rate
Figure 8. VND/USD exchange rate
Table 1. Oil refine projects currently built in VN
Figure 9. Vietnam's retail sales
Table 2. Top retailers in Vietnam market
1.2 . Government Policies Relating to the industry
Table 3. Vietnam’s import tariff before and after WTO
2. INDUSTRY OVERVIEWS
2.1 Global Textile and Garment Industry
2.1.1 Global Textile and Garment Value Chain
2.1.2 Spinning
Figure 10. Global yarn production and consumption
Figure 11. Fibers and oil price movement index up to 4/2016
Figure 12. Fiber applications of the world in 2014
Figure 13. World trade fiber 2010-2014
2.1.4 Weaving, dyeing and finishing
Figure 14. Global yarn and fabric production index Q3/2013 – Q1/2016
Figure 15. World fabric trade in 2010-2014
2.1.5 Sewing
Figure 16. Global textile and apparel market size
Figure 17. Global Textile and Apparel trade
Figure 18. Top 10 largest apparel exporters, 2015
Figure 19. Top 10 largest apparel importers, 2015
Figure 20. Global T&A trade breakdown
Figure 21. Global apparel trade
Figure 22. Apparel market size by countries
Figure 23. Spending on apparel per capita
Figure 24. Average wage in textile sector 2014
Figure 25. Minimum wage 2016
2.2 Vietnam’s Textile and Garment Industry
2.2.1 Overview
Table 4. General Information of Vietnam’s T&G industry
Table 5. Textile and garment enterprises of Vietnam
Figure 26. Geographical distribution of textile businesses
2. 2.3. SPINNING
Figure 27. Fiber production in 2010-2014
Figure 28. Fiber consumption volume and value in 2010-2014
Figure 29. Vietnam fiber and yarn exports
Figure 30. Yarn and fiber export value by countries H1/2016
Figure 31. Number of spindles, rotors of Vietnam
Figure 32. Vietnam’s synthetic fibers companies
Table. 6. Some spinning projects in Vietnam, 2014 – 2016
2. 2.4. WEAVING, DYING AND FINISHING
Figure 33. Vietnam’s fabric production during 2010-7M/2015
Figure 34. Vietnam fabric consumption
Figure 35. Vietnam fabric production by inputs
Figure 36. Fabric import by countries/regions
Figure 37. Vietnam fabric export and import
Table 14. Selected Textile Dyeing Wastewater indicators
2. 2.5. SEWING
Figure 38. Apparel production
Figure 39. Domestic apparel market share
Figure 40. Vietnam apparel export
Figure 41. Apparel exports of FDI and domestic businesses
Figure 42. Apparel export structure in 2014
Table 16. Shipment/delivery periods of selected countries
Figure 43. Inventory indexes of textile and apparel industry
3. INDUSTRY’S POTENTIAL AND RISK ANALYSIS
3. 1 POTENTIAL ANALYSIS
3. 1.1 INDUSTRY’S DEVELOPMENT PLAN
3.2.2. Forecast and potential assessment
Figure 44. Vietnam T&G export turnover forecast
4. INDUSTRY’S KEY PLAYERS
4.1. Key players in Garment Industry
Table 18. Top 8 enterprises with the highest Total asset value of Vietnamese textile industry
Figure 4. Net revenue 2014 – 2015
Figure 46. Gross profit and gross profit margin, 2015
Figure 47. Net profit and net profit margin 2015
Figure 48. Financial expenses 2015
Figure 49. Selling expense 2015
Figure 50. General and administrative expenses 2015
Figure 51. Asset structure
Figure 52. Capital source structure 2013 – 2014
4. 2. KEY PLAYERS IN TEXTILE INDUSTRY
Table 27. Top 05 textile enterprises of Vietnam with largest net revenue in 2015
Figure 53. Net revenue
Figure 54.Gross profit
Figure 55. After-tax profit
Figure 56. Financial expenses
Figure 57. Selling expenses
Figure 58. General and administrative expense
Figure 59. Asset structure
Figure 60. Liabilities structure
Figure 61. Account receivables
Figure 62. Inventories
5. CONCLUSION
Appendix
Table . Top largest Garment Exporters in 2014
1.1 Macroeconomic situation
Figure 1. GDP growth rate by quarters
Figure 2. Vietnam's GDP per capita 2010 - 2016E
Figure 3. Vietnam’s import value
Figure 4. Vietnam’s export value
Figure 5. Main export products to China, H1/2016
Figure 6. Main products imported from China, H1/2016
Figure 7. VND/CNY exchange rate
Figure 8. VND/USD exchange rate
Table 1. Oil refine projects currently built in VN
Figure 9. Vietnam's retail sales
Table 2. Top retailers in Vietnam market
1.2 . Government Policies Relating to the industry
Table 3. Vietnam’s import tariff before and after WTO
2. INDUSTRY OVERVIEWS
2.1 Global Textile and Garment Industry
2.1.1 Global Textile and Garment Value Chain
2.1.2 Spinning
Figure 10. Global yarn production and consumption
Figure 11. Fibers and oil price movement index up to 4/2016
Figure 12. Fiber applications of the world in 2014
Figure 13. World trade fiber 2010-2014
2.1.4 Weaving, dyeing and finishing
Figure 14. Global yarn and fabric production index Q3/2013 – Q1/2016
Figure 15. World fabric trade in 2010-2014
2.1.5 Sewing
Figure 16. Global textile and apparel market size
Figure 17. Global Textile and Apparel trade
Figure 18. Top 10 largest apparel exporters, 2015
Figure 19. Top 10 largest apparel importers, 2015
Figure 20. Global T&A trade breakdown
Figure 21. Global apparel trade
Figure 22. Apparel market size by countries
Figure 23. Spending on apparel per capita
Figure 24. Average wage in textile sector 2014
Figure 25. Minimum wage 2016
2.2 Vietnam’s Textile and Garment Industry
2.2.1 Overview
Table 4. General Information of Vietnam’s T&G industry
Table 5. Textile and garment enterprises of Vietnam
Figure 26. Geographical distribution of textile businesses
2. 2.3. SPINNING
Figure 27. Fiber production in 2010-2014
Figure 28. Fiber consumption volume and value in 2010-2014
Figure 29. Vietnam fiber and yarn exports
Figure 30. Yarn and fiber export value by countries H1/2016
Figure 31. Number of spindles, rotors of Vietnam
Figure 32. Vietnam’s synthetic fibers companies
Table. 6. Some spinning projects in Vietnam, 2014 – 2016
2. 2.4. WEAVING, DYING AND FINISHING
Figure 33. Vietnam’s fabric production during 2010-7M/2015
Figure 34. Vietnam fabric consumption
Figure 35. Vietnam fabric production by inputs
Figure 36. Fabric import by countries/regions
Figure 37. Vietnam fabric export and import
Table 14. Selected Textile Dyeing Wastewater indicators
2. 2.5. SEWING
Figure 38. Apparel production
Figure 39. Domestic apparel market share
Figure 40. Vietnam apparel export
Figure 41. Apparel exports of FDI and domestic businesses
Figure 42. Apparel export structure in 2014
Table 16. Shipment/delivery periods of selected countries
Figure 43. Inventory indexes of textile and apparel industry
3. INDUSTRY’S POTENTIAL AND RISK ANALYSIS
3. 1 POTENTIAL ANALYSIS
3. 1.1 INDUSTRY’S DEVELOPMENT PLAN
3.2.2. Forecast and potential assessment
Figure 44. Vietnam T&G export turnover forecast
4. INDUSTRY’S KEY PLAYERS
4.1. Key players in Garment Industry
Table 18. Top 8 enterprises with the highest Total asset value of Vietnamese textile industry
Figure 4. Net revenue 2014 – 2015
Figure 46. Gross profit and gross profit margin, 2015
Figure 47. Net profit and net profit margin 2015
Figure 48. Financial expenses 2015
Figure 49. Selling expense 2015
Figure 50. General and administrative expenses 2015
Figure 51. Asset structure
Figure 52. Capital source structure 2013 – 2014
4. 2. KEY PLAYERS IN TEXTILE INDUSTRY
Table 27. Top 05 textile enterprises of Vietnam with largest net revenue in 2015
Figure 53. Net revenue
Figure 54.Gross profit
Figure 55. After-tax profit
Figure 56. Financial expenses
Figure 57. Selling expenses
Figure 58. General and administrative expense
Figure 59. Asset structure
Figure 60. Liabilities structure
Figure 61. Account receivables
Figure 62. Inventories
5. CONCLUSION
Appendix
Table . Top largest Garment Exporters in 2014
